Matsumoto Inc. (7901) AI Stock Analysis

• Market Cap: ¥1.18B
• Dividend Yield: N/A
• Average Volume (3M): 19.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -1.28%
• EPS Growth: -80.80%
• Country: JP
• Employees: 181
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -116.93
• Shares Outstanding: 1,143,900
• 10 Day Avg. Volume: 6,890
• 30 Day Avg. Volume: 19,220
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -4.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ¥1,010.00 ▲(23.17% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is held down primarily by weak financial performance (declining revenue, ongoing losses, and negative operating/free cash flow). Technicals are a key offset, with strong trend and positive momentum signals, while valuation is mixed due to the negative P/E and no provided dividend yield.

Positive Factors

Diversified Revenue Streams

Multiple income streams — product sales across imaging/optics/medical lines, recurring service agreements, and strategic partnerships — reduce reliance on a single market cycle. Over 2–6 months this diversified model supports steadier cash inflows and demand resilience while enabling cross-selling and after-sales margin capture.

Technology & R&D Focus

A clear emphasis on innovation and advanced technology in imaging, optics and healthcare creates durable product differentiation. Sustained R&D investment supports new product development and helps maintain pricing power and technical barriers to entry, underpinning medium-term competitive positioning in specialized markets.

Stable Equity Base

A relatively stable equity ratio combined with only moderate leverage provides a capital cushion versus peers. If cash generation stabilizes, this balance-sheet profile allows the company to fund R&D and targeted capex without immediate solvency risk, preserving strategic flexibility over the coming months.

Negative Factors

Declining Revenue & Margins

Sustained top-line decline and compressing gross/EBIT margins indicate structural demand weakness or cost pressures. This undermines operating leverage and constrains the company's ability to fund R&D and margin-restoring initiatives internally, making medium-term profitability recovery more challenging.

Negative Cash Generation

Chronic negative operating and free cash flow limit the company's ability to self-fund investments, service debt, or absorb shocks. Over several months this forces dependence on external financing, increases refinancing risk, and restricts capacity for consistent capital allocation to growth or product development.

Negative Return on Equity

Negative ROE signals shareholder capital is not producing returns and points to operational inefficiency or poor capital allocation. Persisting negative ROE erodes investor confidence and makes access to new equity costly, constraining strategic options and long-term value creation if not corrected.

Matsumoto Inc. Business Overview & Revenue Model

Company Description

Matsumoto Inc. (7901) is a prominent Japanese company primarily engaged in the manufacturing and distribution of high-quality consumer electronics and precision equipment. The company operates in several sectors, including imaging, optics, and healthcare technologies, offering a diverse portfolio that includes cameras, optical devices, and medical instruments. With a commitment to innovation and quality, Matsumoto Inc. leverages advanced technology to meet the evolving needs of its global customer base.

How the Company Makes Money

Matsumoto Inc. generates revenue through multiple streams, primarily from the sale of its core products such as cameras, optical devices, and medical equipment. The company adopts a direct sales model, distributing its products through both retail channels and online platforms, which allows it to reach a wider audience. Additionally, Matsumoto Inc. earns income from service agreements and maintenance contracts for its medical technologies, providing ongoing support to healthcare institutions. Strategic partnerships with other technology firms enhance its product offerings and market reach, further contributing to its earnings. The company's focus on research and development ensures that it remains competitive, allowing it to introduce new products that cater to changing market demands.

Matsumoto Inc. Financial Statement Overview

Summary

Weak fundamentals: declining revenue, negative net profit and EBIT margins, and deteriorating gross margin. Balance sheet is pressured by rising leverage and negative ROE, while negative operating and free cash flow raises liquidity and cash-management concerns.

Income Statement

Matsumoto Inc. has experienced declining revenue over the past few years, with a significant drop in revenue growth rate in the latest period. The company is struggling with negative net profit margins and EBIT margins, indicating operational inefficiencies and challenges in maintaining profitability. The gross profit margin has also decreased, reflecting potential issues in cost management or pricing strategy.

Balance Sheet

The company's debt-to-equity ratio has increased over time, suggesting a growing reliance on debt financing, although it remains moderate. The return on equity is negative, indicating that the company is not generating profit from its equity base. The equity ratio is relatively stable, but the overall financial health is weakened by the negative ROE.

Cash Flow

Matsumoto Inc. has negative operating cash flow, which is concerning as it indicates the company is not generating sufficient cash from its core operations. The free cash flow is also negative, and the free cash flow growth rate is highly volatile, reflecting inconsistent cash generation. The ratios of operating and free cash flow to net income are erratic, highlighting cash flow management issues.

Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	2.14B	2.17B	2.21B	2.24B	2.35B	2.27B
Gross Profit	267.02M	239.12M	327.33M	447.16M	248.72M	111.42M
EBITDA	-484.21M	-520.94M	-28.66M	108.07M	-1.04B	-81.51M
Net Income	-623.71M	-653.36M	-86.61M	74.43M	-1.29B	-389.11M
Balance Sheet
Total Assets	2.13B	2.09B	2.84B	2.83B	2.65B	3.84B
Cash, Cash Equivalents and Short-Term Investments	233.00M	219.84M	557.42M	982.96M	948.10M	758.24M
Total Debt	734.00M	348.32M	487.16M	400.00M	100.00M	0.00
Total Liabilities	1.42B	1.26B	1.38B	1.31B	1.21B	1.08B
Stockholders Equity	706.00M	825.17M	1.46B	1.51B	1.44B	2.77B
Cash Flow
Free Cash Flow	0.00	-190.21M	-203.03M	-298.00M	123.58M	-500.08M
Operating Cash Flow	0.00	-136.42M	-68.85M	-73.98M	136.62M	-74.89M
Investing Cash Flow	0.00	-56.26M	-77.26M	-184.13M	-3.03M	-424.22M
Financing Cash Flow	0.00	-144.91M	-279.43M	292.98M	56.27M	-43.83M

Matsumoto Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 820.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7901, the sentiment is Neutral. The current price of 820 is below the 20-day moving average (MA) of 1333.55, below the 50-day MA of 965.14, and below the 200-day MA of 923.73, indicating a neutral trend. The MACD of 8.95 indicates Positive momentum. The RSI at 44.41 is Neutral, neither overbought nor oversold. The STOCH value of 6.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7901.

Matsumoto Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3955	79 Outperform	¥9.29B	9.26	―	3.00%	4.22%	13.08%
3945	78 Outperform	¥4.06B	4.76	―	3.33%	1.53%	20.73%
3892	67 Neutral	¥9.43B	11.77	―	3.00%	-2.03%	-23.36%
3895	66 Neutral	¥3.60B	5.90	―	4.43%	-3.73%	-7.14%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
9929	56 Neutral	¥4.57B	58.04	―	2.62%	-1.03%	-43.05%
7901	51 Neutral	¥1.18B	-2.68	―	―	-1.28%	-80.80%